The NI changes are going to cost my organisation £1000 per employee

[flashbac]

The NI changes are going to cost my organisation on average £1000 per employee, The lowering of the threshold alone is going to cost around £600 extra per employee.

We are heavily regulated with fixed income. We're a not for profit. Our customers expectations are increasing. We are now most likely going to have to somehow reduce our headcount now, and payrises for April are going to be off the table.

Just shaking my head really. Our employees don't deserve this. Hard to see how this isn't a tax on jobs.

The lowering of the threshold also means employers have to pay for more workers, because part time salaries are now dragged into it.

A lot of people reading this won't care. All I can say is this NI increase will also affect you. just think about Local authorities, childcare providers and other services. Do you think it won't affect your Councils services/tax bills, to give one example?

(I'm not a Tory bot btw, before anyone starts accusing me of being one. I voted Remain, don't support the Tories at all, can't stand Boris and his cronies.)

I could be wrong, but I think (most) people understand the money has to come from somewhere and this is it, and the the things you say are a part of that.

Well, the money has to come from somewhere. The Tories have made people believe you shouldn't have to pay taxes... but that means we have dire public services.

Your situation sounds unusual, in that you have fixed income and are not for profit. Is there anything you can do to raise money in a different way?

The country needs money to invest in the services we demand. Personal tax increases weren't very palatable. Employers NI is a quick money grab that's sustainable whilst we have high employment and is a benefit for workers. I appreciate your position as a not for profit is different of course

Yeah, that was one of the first things that I said that the budget is going to hit charities hard when commissioning has caused a race to the bottom in terms of funds available from public bodies and being "competitive" to win contracts. I'm on the board of a charity and we pay the living wage for a couple of jobs, most are higher, but if we increase these posts we're starting to get into difficulties with wage differentials all the way up the organisation.

I wondered about this. If the NHS employs 1.5 million won’t the extra money Labour put into it go on increased NI contributions?

Sure those people that may end up being made redundant as businesses look at where they can cut back to fund the extra NI will appreciate this. Their avocado and latte fund can pay for their mortgage instead can it?

We are also going to have real difficulties with this. We are a domestic abuse charity running a refuge & other services, unless the LA and our other funders are going to increase their funding to us (haha) I think we will have to reduce staff and therefore services…

I believe that my very profitable company will want to keep the profits high and improve on the previous years. I think with the NI change and the minimum wage raise, they will just not replace staff.

There will be minimal rises for anyone not on the minimum wage but you will be expected to work harder. We are already very lean and many employees chose not to take lunch or take 15 minutes instead of the hour they aren’t getting paid for.

Putting costs up will not work as our competitors are unlikely to do that. We have already lost a number of good staff when they have done this in previous years. Time to start looking.

It is likely that public service employers will not have tobpay the increase in NI

Now is a good time to start supporting the tories then

£1000 over what time period? A month? A year?

🤷 that's what was voted for when labour were elected. Where did you think the money was going to come from?
Unfortunately the poor always get fucked over.

There will be no pay rises going forward to cover these amounts , so again the working person will suffer. It’s just all been done in a backhanded way as usual.

One thousand pounds per employee x 1.5 million = 1.5 billion. The extra money earmarked for the NHS almost ten times that per year but yes it will mean that that 1.5 billion ish of the total will be needed just to stand still.

I honestly don't think people are going to understand anything of the sort when they're being faced with less service for more money because hours and jobs are cut back to balance the books. Or places close because they can't do it and there's less choice.

When things like food and utilities started to rise people didn't make the connection between that and other prices rising or service scaled back, there is just a lot of 'not my problem' and 'it's just greedy/laziness" there was no adjustment of expectations there and there won't be with this. In fact the expectations increased.

I don't resent the min wage pay rise or the money going to the services needed, but I'm going to resent doing more work for the same pay to cover the shortfall in staffing and getting yelled at by the public for it.

Still it's better than my employer closing if they don't do something to fund it, and me losing my job. Silver linings and all that. I work for a small, independent company and there's no CEO or shareholders raking in millions in our company, or huge profit margin to cut.

Of course it's a tax on jobs. Where would you prefer to get tax from?

The nhs will use the extra money in a stupid way and employ more managers - again. So
unless they have a clear guided plan for the spending - all the cash raised crippling businesses and preventing pay rises will be frivolously thrown down the drain on nonsense .

A year. It's about 900 quid extra a year for a worker on median income according to the IFS.

Who did you vote for? I mean you wanted the others out I assume so Labour are in and it’s tax hikes

"The money has to come from somewhere"

I was hoping it would come from the very rich and the massive corporations, not our food security and small businesses.

I didn't vote labour, but I would be embarrassed now if I had.

And we thought Boris was a liar....

Of course it will, it won't make a blind bit of difference

What lie did they tell?

That they weren't going to do tax and spend.